I posted an article about GNK, but it got deleted....probably because it came from a source outside Yahoo's domain.
What it basically stated was that GNK was quite a bit undervalued and that it was being passed over because too many investors are watching the BDI. It stated that the BDI is what's happening today and that most of these ships were contracted back some time ago. It also stated that the glut of ships might be just a short term concern and that it really didn't amount to much of anything.
Using current metrics, GNK could easily tack on another 20% and still be undervalued. What will it take to get some recognition....no answer to that question.
nah, i still like gnk :-P considering where the stock price is today without a divy, if finances were arranged to allow a divy, stock price would be a couple of bucks higher. call me greedy....
fun day today playing keep away from the big short trying to cover ;-)))
And in return you, like major shareholder Peter G., received a fleet of new boats.
And that fleet of new boats, and the revenue it earns, is the ONLY reason there is currently stability in EPS.
The point being... you are - present tense - receiving a share of the financial "largesse".
If you don't care for GNK's financial strategy and would prefer current dividends to potential future earnings, consider swapping GNK for BALT, SBLK, or NM (to name a few) all of which pay a current dividend.
These sort of large transactions just seem to lead to management largesse. if the financials have to take a whack, then at least whack them so that i (the shareholder) get invited to the party. the arrangement made on this occassion has left the shareholder holding the proverbial bag. so far we have seen a million dollar and a quarter million dollar payout go due to the bourbon transaction. let's see what else come november...
whenever these large transactions go through, it seems to lead to management largesse. i just want to be invited to the party. if management insists on giving a whack to the financials, then cut me (the shareholder) a piece too...
Let's see if it get's deleted again...
I CAN'T POST THE WHOLE ARTICLE BECAUSE ITS MORE THAN THE 4000 CHARACTER LIMIT, BUT HERE ARE A FEW PIECES...
OCTOBER 4, 2010, 9:58 A.M. ET
A Misguided Correlation Keeps Shipping Stocks Undervalued
By David Benoit Of DOW JONES NEWSWIRES
NEW YORK --The shippers carrying commodities across the seas believe world-wide demand is strong but investors are missing the boat.
Heads of companies, from steady Paragon Shipping Inc. (PRGN) to little Seanergy Maritime Holdings Corp. (SHIP), say they see no slump in the tons of iron ore, coal, wheat and other dry bulk products they haul. And while they are rightly worried there may be too many ships in the water, they say global demand will keep hulls full.
But that optimism hasn't spread to their share prices. Shipping stocks remain down sharply this year and well below the prices analysts call fair. An index that tracks shipping stocks is down 8% this year, in contrast with the Standard & Poor 500's 2.7% gain.
The culprit in the discrepancy is a measure investors look to as a gauge, the Baltic Dry Index, which is down 18% this year.
YOU CAN READ THE REST OF THE ARTICLE BY USING THE LINK ABOVE.
This is a great link... And some of these shippers are putting their money behind their mouth, particularly GNK with their recently fleet purchase. They obviously feel demand will be there in the future. Prices are low for ships, so lets buy, and unlike other shippers haven't let their shareholders suffer with a huge dilution.
I tried breaking the article up into pieces and it still wouldn't post it. I figured that Yahoo just wouldn't print a copyrighted article that wasn't within Yahoo's copyright domain.
Anyways, the information's there for everyone to see.